Are you a startup founder, with a blockchain-based solution to a problem, and wondering how to launch a Web3 startup? Then you need to read this article.
Now is an exciting time to get into the Web3 space. It’s growing fast. Whether you’ve got a blockchain-based solution to a real-world problem, an NFT project, or are building something for the metaverse, there’s never been a better time to launch a Web3 startup.
In 2021 alone, around $30 billion was invested in the Web3 space. Some of the largest investment firms and accelerators in the world are betting big on Web3, blockchain, and NFT-based technologies and projects. That trend is only going to accelerate in 2022 and beyond as funds are deployed and more investors get into this sector.
In this guide, we cover the most crucial steps to launching a Web3 startup.
Starting a Web3 startup
As is the case with any startup, you need a problem. Something that needs solving. And whether by luck or past experience, you understand how to solve it. A pain point and a solution are the cornerstones of product-market fit.
It’s critical to decide whether the solution will be Web3 or SaaS. There needs to be a compelling reason why this solution should be built using blockchain or Web3-based technology. Founders shouldn’t jump into Web3 for the sake of it.
So, firstly, ask yourself: Does this need to be a Web3 solution?
If the answer is yes, then you need to know how to launch a Web3 startup.
Follow this quick guide to launching a Web3 startup, if you’re ready to embark upon this journey.
4 Essential Steps To Launch A Web3 Startup
#1: Build a community
Whether you are building solutions for enterprise-level customers or a new B2C community or platform, such as an NFT project, Web3 startups always need a community.
A community, in Web3 terms, isn’t just nice to have. It’s essential. A community is integral to how Web3 startups operate, given that blockchain-based networks rely on nodes and stakeholders. People around the world are willing to invest their time and money (usually both) in making Web3 infrastructure run.
Not only that, but Web3 communities are often the people who contribute money to make the startup run, grow, and scale. So if you’ve got an idea for a Web3 startup, start building a community straight away. Even if your idea isn’t completely clear. Build in public. Address challenges through communities, and scale with the support of the community you are putting effort in to create.
#2: Drive growth with marketing
Marketing is absolutely essential when it comes to building Web3 startups. You can’t build a community without it, and if you don’t do that, you can’t progress. Unless you have a purely B2B offering (and even then, some marketing is still important), you need the support of a committed and engaged community.
Work with a qualified, experienced blockchain/crypto, Web3, or NFT-based marketing agency. Lean on and leverage their support and expertise to create and build social media channels, content marketing, PR, SEO, video, and other marketing materials to accelerate growth.
#3: Raise funding
As with any startup, one of the crucial steps to launch a Web3 startup is raising funding. It used to be the case, back in 2018, when that was really only possible through an Initial Coin Offering (ICO). However, the investment landscape has shifted quite dramatically.
Investors of every size and scale are starting to put real money into the blockchain/crypto and broader Web3 space. $30 billion was invested last year and some of the world’s largest VC firms have raised billions more that are going to be deployed into these sectors this year and beyond.
Alongside the headline-grabbing firms, such as a16z, countless other angel and VC investors are putting money into Web3 startups. Now is the time to produce White Papers, pitch decks, and start getting onto investors’ radars.
It’s still sensible to raise funds with an Initial Coin Offering (ICO), especially if you’ve got a committed community, but the good news is that now Web3 founders can also go down a more traditional route to attract investment.
#4: Ensure long-term viability
The final step, once you’ve overcome these hurdles, is to make sure your startup can grow, scale, and be viable in the long term. It’s the biggest challenge every founder faces. Long-term viability means generating revenue so that your startup is no longer reliant on funding, investors, or ICOs.
Naturally, this step is always going to take more time. Often it’s something startup founders are working on for years. The difference is, with Web3 startups, you’ve got a community to support you along the way.
Start your Web3 startup with DEIP
Given our experience in this sector, we have created a solution to help founders overcome some of the challenges of building Web3 startups. We have developed a tool, known as Casimir, to support founders through every stage of creating, launching, growing, and scaling a Web3 startup.
DEIP is a creator economy protocol exclusively for intangible assets, derivatives, and Web3-based projects. Our Casimir tool is a Web3 startup builder, giving founders everything they need to start building and scaling Web3 startups.
Let us help turn your ambitious Web3 startup idea into reality!
Alex Shkor, the author